This article was authored by International Trade Specialist Michael J. Kelleher

ANNOUNCEMENTS

On June 17th, the ITC announced that President Barack Obama designated Meredith M. Broadbent, a Republican of Virginia, as Chairman of the United States International Trade Commission (“ITC”) for the term June 17, 2014, through June 16, 2016. In addition, President Obama designated Dean A. Pinkert, a Democrat of Virginia, as Vice Chairman of the ITC for the term June 17, 2014, through June 16, 2016. Commissioners are appointed by the President and confirmed by the Senate for nine-year terms, unless they are appointed to fill unexpired terms. The Chairman and the Vice Chairman are designated by the President for two-year terms in those positions.

NEW AD\CVD INVESTIGATIONS

Carbon and Certain Alloy Steel Wire Rod from China

On July 1st, the Department of Commerce (“Commerce”) announced its affirmative preliminary determination in the countervailing duty investigation (“CVD”) of imports of carbon and certain alloy steel wire rod from China. Commerce calculated a preliminary subsidy rate of 81.36% for mandatory respondent Hebei Iron & Steel Co. Ltd. Tangshan Branch; 10.30% for the mandatory respondent Benxi Iron & Steel Group Import & Export Corp. and 13 affiliates; and preliminary subsidy rate of 10.30% for all other producers\exporters in China. As a result of the preliminary affirmative determinations, Commerce will instruct U.S. Customs and Border Protection (“CBP”) to require cash deposits based on the preliminary subsidy rates. Kelley Drye & Warren is representing petitioners ArcelorMittal USA LLC, Charter Steel, Evraz Pueblo, Gerdau Ameristeel US Inc., and Keystone Consolidated Industries, Inc. Commerce is due to issue its preliminary determination in the antidumping investigation (“AD”) on August 29, 2014 pursuant to its Postponement of Preliminary Determination in 79 Fed. Reg. 34,491 (June 17, 2014). Commerce will issue its unextended final AD and CVD determinations in mid-November 2014 or, if fully extended, in late January 2015.

On June 24th, the ITC announced that it had determined that a U.S. industry is materially injured by reason of imports of welded stainless steel pressure pipe from Malaysia, Thailand, and Vietnam that Commerce has determined are sold in the United States at less than fair value. Commissioners Irving A. Williamson, David S. Johanson, and Rhonda K. Schmidtlein voted in the affirmative. Chairman Meredith M. Broadbent, Vice Chairman Dean A. Pinkert, and Commissioner F. Scott Kieff voted in the negative. As a result of the ITC’s affirmative determinations, Commerce will issue antidumping duty orders on imports of this product from Malaysia, Thailand, and Vietnam.

SUNSET REVIEWS

Polyethylene Terephthalate (PET) Film from India and Taiwan

On June 27th, the ITC determined that revoking the existing CVD order on polyethylene terephthalate (PET) film from India and the existing AD orders on PET film from India and Taiwan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. All six Commissioners voted in the affirmative. As a result of the Commission’s affirmative determinations, the existing orders on imports of this product from India and Taiwan will remain in place.

Welded Stainless Steel Pressure Pipe from China

On June 24th, the ITC determined that revoking the existing AD and CVD orders on welded stainless steel pressure pipe from China would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. All six Commissioners voted in the affirmative. As a result of the Commission’s affirmative determinations, the existing orders on imports of this product from China will remain in place.

Polyvinyl Alcohol from China, Japan and Korea

On June 6th, the ITC voted to conduct full five-year sunset reviews concerning the AD orders on polyvinyl alcohol from China, Japan, and Korea. As a result of these votes, the Commission will conduct full reviews to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. The full review will include a public hearing and issuance of questionnaires.

332 INVESTIGATIONS

On June 17th, the ITC announced that it would conduct a Section 332 investigation to examine global rice trade. The investigation, Rice: Global Competitiveness of the U.S. Industry (Inv. 332-549), was requested by the House Committee on Ways and Means. Under Section 332 of the Tariff Act of 1930, the ITC investigates a wide variety of trade matters based upon a request by the President, the Senate Committee on Finance, the House Committee on Ways and Means, the USTR, or upon its own motion. In this matter, the ITC will report on factors of competition in major rice producing and exporting countries, including Brazil, China, India, Indonesia, Thailand, Uruguay, and Vietnam, as well as the United States. As requested, the ITC will also perform a qualitative and quantitative assessment of the impact of government policies and programs in the highlighted countries on rice production, exports, consumption, and domestic and export prices. The Commission will hold a public hearing on September 10, 2014 (and will be accepting comments). The ITC will deliver the report to the Committee by April 14, 2015.

APPEALS

On June 24th, Judge Richard K. Eaton of the United States Court of International Trade issued Slip Opinion 14-70 in Jacobi Carbons AB v. United States, Court No. 12-00365 affirming the Department of Commerce’s Final Results in the fourth administrative review of the antidumping duty order on certain activated carbon from China. Kelley Drye & Warren (Alan Luberda, John Herrmann and Skip Hartquist) successfully argued on behalf of Defendant-intervenors Calgon Carbon Corp. and Norit Americas, Inc., domestic manufacturers of activated carbon.

Plaintiffs, all of which are producers, exporters, or importers of subject merchandise, contested two aspects of Commerce’s Final Results: (1) the selection of the surrogate value for carbonized material, one of the primary inputs used in the production of subject merchandise; and (2) the selection of the surrogate value for truck freight. In addition, Shanxi Industry and Tangshan (“separate rate respondents”) claimed that, should Commerce recalculate the final dumping margin for the mandatory respondents pursuant to any remand ordered by the court, Commerce must also recalculate the rate assigned to the separate rate companies. Judge Eaton sustained Commerce’s choice of a surrogate value for carbonized material and truck freight as well as Commerce’s calculation of the separate rate.